This past year has been a challenging one. The pandemic has affected all of us, and our industry, much like every sector, is adapting. While many more challenges lie ahead, we also see opportunities.
The oil and natural gas industry continues to be an economic cornerstone in West Virginia, and its potential is enormous.
The Mountain State is the seventh largest U.S. natural gas producer, and we rank fourth in proven gas reserves.
The natural gas industry is the state’s top-paying sector. The American Petroleum Institute (API) estimates that the natural gas and oil industry supports more than 71,000 jobs in West Virginia, and the estimated wages associated with these jobs are more than $3.5 billion.
Our industry is responsible for more than $2.86 billion in state severance and property tax revenue since 2008.
This annual publication, “Gas Facts,” offers the most recent production and economic impact data. It’s a snapshot of where we are today.
- Natural gas production increased more than 17% from 2018 to 2019. Oil production grew by more than 30%.
- Severance tax collections in FY 2020 topped $160 million. Property tax contributions increased by more than 24% over 2019.
- Natural gas users – households, businesses, manufacturers – have saved $1.1 trillion since
2008 because natural gas production increased in the Appalachian Basin states of West Virginia, Ohio and Pennsylvania
- That doesn’t mean we don’t face glaring challenges. Commodity prices are decreasing. Prices will remain low for the foreseeable future. The economy will struggle as we work to recover from the pandemic’s toll. Burdensome lawsuits and imprudent policies have hindered pipeline projects and cut pipeline construction jobs in half.
We must encourage the use of natural gas in West Virginia. We must adopt policies that make West Virginia competitive with its neighboring states. We must work to encourage new facilities that will use our products within the state and boost investment and employment. Downstream investment represents a huge economic multiplier.
Natural gas producers and natural gas utilities cannot succeed alone. Companies in the state’s natural gas industry have come to see the strength in shared success.
That’s part of the reason we created GO-WV. We want a unified voice as we spread our message throughout the state and beyond. It’s truly a message of hope for the Mountain State.
The data underlies the industry’s vital impact. I hope this information is helpful, and I encourage you to contact our office at 304.344.9867 if you have questions. Thank you.